The interest on loans which the State’s four power distribution companies (Discoms) had availed from the World Bank through the State Government has nearly doubled with these companies now owing over `1,500 crore to the bank.
The Government had availed a loan of `459.64 crore and advanced the amount to the Discoms to help reduce transmission and distribution losses.
They were told that this loan would be converted into grant if they, by upgrading the infrastructure, keep reducing transmission loss at the rate of 3 per cent per annum.
While the transmission and distribution (T&D) losses continue to be a staggering 35 per cent, the loan amount including interest has gone up to `1,506 crore, said sources.
As these companies have not taken any step to clear the dues, the Government has started feeling the heat, sources added.
While the Odisha Electricity Regulatory Commission-controlled Cesu availed `204.18 crore of loan, the Nesco secured `91.28 crore, the Wesco `90.96 crore and the Southco `72.59 crore for development of power infrastructures.
As per the latest data on the loan, the loan of the Cesu has gone up to `979.7 crore, that of the Wesco `101.45 crore, the Nesco `99.98 crore and the Southco Rs 71.7 crore.
The T&D losses were around 38 per cent when the Discoms availed the loans and the losses have not been reduced significantly, the sources said.
While the Wesco, the Nesco and the Soutco have partly repaid interest and principal amount, the Cesu has not repaid any amount. The total interest on the loan amount of the Cesu by the end of the previous fiscal was over `1,046 crore, the interest on the loan amounted to `774 crore.
As on date, the Cesu carries a loan burden of `979 crore, the Wesco `101 crore, the Nesco `99 crore and the Southco `71 crore.
Meanwhile, the Government is under immense pressure for the management of the Discoms after the Reliance Energy exited from the power distribution system in the State.